Oatly Group AB · NASDAQ:OTLY
Oatly Group AB — Q1 2023 Earnings Presentation
38 slides from Oatly Group AB's earnings presentation, May 9, 2023
Slide 1: Oatly 2023 Earnings Presentation
THE ORIGINAL Ly! 10 2023 EARNINGS PRESENTATION
Slide 2: Today's Speakers
>L TODAY’S SPEAKERS J ¢ TONI PETERSSON, CEO DANIEL ORDONEZ, COO
Slide 3: Legal Disclaimer
LEGAL DISCLAIMER This presentation contains forvard-locking etatenente within the saaning of the Private Securitive Litigation Reform Act of 1995, ny exprese oF implied etatenente contained in thie preeentation that are not statesante of historical fact may be deened to be forvard-ocking statonante,
Slide 4: It's Like Milk But Made for Humans
It’s like milk but made for humans.
Slide 5: Toni Petersson to Become Co-Chairman
Toni Petersson to become Jean-Christophe Flatin to Co-Chairman of BOD become CEO on June 1, 2023 HAS SPENT THE PAST YEAR AS GLOBAL PRESIDENT OF OATLY, LEADING SIGNIFICANT VALUE-CREATING CHANGES a HAS LED OATLY SINCE 2012, THROUGH GLOBAL EXPANSION AND IPO , WILL BECOME CO-CHAIRMAN OF THE BOD, ALONGSI
Slide 6: Key Messages
> Li _KEVMESSAGES J ~ Pn 4 2023 IS OFF TO A GOOD START WITH A SOLID Q1 4 IN Q1, WE MADE NOTABLE PROGRESS ON OUR 2023 PRIORITIES: v ACCELERATE TOP LINE GROWTH GLOBALLY v CONTINUOUS IMPROVEMENT IN SUPPLY CHAIN V DRIVE TOWARDS POSITIVE ADv. EBITDA IN 2024 / EACH SEGMENT IS STARTING TO PLAY OFFENSE 4 WE
Slide 7: Solid Start to the Year
SOLID START TO THE YEAR 1Q 2023 Y/Y Revenue Growth +18% Y/Y Constant Currency Revenue Growth? +24% change vs prior quarter +960 bps Gross Margin 17% change vs prior year +790 bps change vs prior quarter +150 bps Adj. EBITDA? $(50) change vs prior year +522 change vs prior quarter +511
Slide 8: EMEA's 2023 Priorities
EMEA’S 2023 PRIORITIES STRENGTHEN CORE MARKETS GROW FOODSERVICE CUSTOMERS EXPAND PORTFOLIO BEYOND COFFEE EXPAND TO ADJACENT MARKETS
Slide 9: EMEA Strengthening Core Markets and Foodservice
EMEA CONTINUED TO STRENGTHEN ITS CORE MARKETS AND EXPAND FOODSERVICE CUSTOMER BASE Y/Y RETAIL SALES VALUE SHARE OF NON-DAIRY MILK =» RECENTLY-SIGNED CUSTOMERS GROWTH IN Q1 2023' ; 27.6% , 26.4% 26.6% 27218 Y) : 25.39 . 12h : F T7 | | ! \Y edyn ' “J 1 22.0% — ! Nordic : me Choice GRIND Hotels Plant-B
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Slide 11: EMEA Increasing Marketing Investments
EMEA INCREASING MARKETING INVESTMENTS TO FURTHER SUPPORT PRODUCT EXPANSION DRINK PORTFOLIO EXPANSION LAUNCH OF SOFT SERVE FESTIVAL CONTAINER BACK ON THE BILL- BOARDS! ON THE STREETS! SARS) Campaic ross UK, DACH, NL, oie | SE & FI including OOH, print, partnerships, PR, social and
Slide 12: EMEA Expanding Into Adjacent Markets
EMEA IS MAKING GOOD PROGRESS IN ADJACENT MARKETS New Markets' Impact to Total EMEA in Ql ee i ‘ 31% 5h % of Segment's % of Segment's Total Volume Sold Y/Y Volume Growth
Slide 13: Americas' 2023 Priorities
COMMERCIAL AMERICAS’ 2023 PRIORITIES: RE-ACCELERATE GROWTH WITH CONTINUED SUPPLY CHAIN IMPROVEMENT Execute transition Consolidate to Ya YA Foods co=packer network SUPPLY CHAIN Expand distribution across all channels Refine in-store Accelerate brand promotions starting building starting via new doors
Slide 14: Americas Supply Chain
AMERICAS’ SUPPLY CHAIN IMPROVEMENT PLANS PROGRESSING WELL Execute Transition to Ya YA Foods TRANSITION ON-TRACK AND GOING WELL OATLY EMPLOYEES TRANSITIONED TO YA YA SERVICE LEVELS REMAIN IN MID-90S Consolidate Co—Packer Network NOTIFIED ALL IMPACTED CO-PACKERS CONSOLIDATION EXPECTED TO BE COMPLETE B
Slide 15: Solid Execution on Americas Commercial Priorities
SOLID EXECUTION ON AMERICAS’ COMMERCIAL PRIORITIES IN Q1 BEGAN TO INCREASE IN-STORE EXPANDED DISTRIBUTION | PROMOTIONS : STARTED TO IMPROVE SHARE TRENDS Y/Y CHANGE 7% OF RETAIL SALES SOLD ON PROMOTION Y/Y CHANGE IN DOLLAR SHARE OF (12 WEEKS ENDED 3/25/2023) : (PERIODS ENDED 3/25/2023) ' CHILLED OAT
Slide 16: Americas Q2 Brand Building Activity
AMERICAS Q2 BRAND BUILDING ACTIVITY 1ST EVER PLANT-BASED DAIRY ALTERNATIVE “PRODUCT CLIMATE FOOTPRINT (PCF) CHALLENGE” ©-N SPONSOR OF AUS NATIONAL SPORTS LEAGUE! CLIMATE LABELING CAMPAIGN BASEBALL Official Oatmilk & PB Frozen Dessert Player Collabs PRINT: NY Times, Washington Post, LA Times >100 Sam
Slide 17: We Bought This Two-Page Ad
WE BOUGHT THIS TWO-PAGE AD TO TELL YOU WE'VE BEGUN INCLUDING CLIMATE FOOT- PRINT NUMBERS ON OUR PROD- UCTS. AND WERE DONATING THIS PAGE TO THE DAIRY INDUSTRY 50 THEY CAN TELL YOU THEIR CLIMATE FOOTPRINT NUM- BERS TOO. ee BS
Slide 18: Asia's 2023 Priorities
ASIA’S 2023 PRIORITIES EXPAND LAUNCH DRIVE DISTRIBUTION NEW PRODUCTS EFFICIENCY
Slide 19: Asia's Retail Execution
ASIA’S RETAIL EXECUTION IS A GREAT EXAMPLE OF PROGRESS RETAIL STORE COUNT | ICE CREAM Q1 REVENUE ALREADY | NEW RTD PRODUCTS | “7% OF SEGMENT’S Q1 REVENUE Pe upcoing in 2 Y/YZ+202% a/ax. +457 | Bev CLASSIC STICK & CUP bs li z a | a DOUBLE LAYERS Beg PSL T PL een ; aD SHAPE {=r fers) ai? £S 22 Ql 2204
Slide 20: Driving Efficiency in Supply Chain
DRIVING EFFICIENCY IN SUPPLY CHAIN IMPROVED UTILIZATION AND PRODUCTION EFFICIENCY ENABLED BY SIGNIFICANT Y/Y INCREASE IN VOLUME SOLD AND VOLUME PRODUCED LOCALLY SUPPLY AND DEMAND TEMPORARILY IMPACTED BY COVID-19 IN THE BEGINNING OF THE QUARTER; NOW BEHIND US LAUNCHED SEVERAL EFFICIENCY PROJECTS TO R
Slide 21: Solid Q1 Results
SOLID Q1 RESULTS MAKING PROGRESS ON STRATEGIC PRIORITIES SUMMARY WILL CONTINUE TO BE DISCIPLINED IN BALANCING GROWTH-DRIVING INVESTMENTS AND PROFITABILITY REMAIN ON-TRACK TO DELIVER 2023 GUIDANCE
Slide 22: Financial Highlights
“FINANCIAL HIGHLIGHTS @ og
Slide 23: 1Q 2023 Financial Highlights
1@ 2023 FINANCIAL HIGHLIGHTS 1Q 2023 Y/Y Revenue Growth +18% Y/Y Constant Currency Revenue Growth? +24% change vs prior quarter +960 bps Gross Margin 17% change vs prior year +790 bps change vs prior quarter +150 bps Adj. EBITDA? $(50) change vs prior year +522 change vs prior quarter +511
Slide 24: 2023 Revenue Growth
10 2023 REVENUE GROWTH Revenue (USD in millions) % Year-over-year growth +18% +15% Revenue Growth a a” $16.2 a] (58) \ ) Y +24% Constant Currency Revenue Growth(?) Q1 2022 Revenue YoY Volume Growth (1) YoY Constant Currency FX Impact Q1 2023 Revenue Price/Mix Growth(2) Notes: ay not add due to round
Slide 25: Q1 2023 Revenue Bridge
EMEA Americas Asia Total (2) Constant currency revenue is @ non-1FRS 10 2023 REVENUE BRIDGE Constant ; Constant | L---- ees Currency’) i Currency") | Revenue Volume Price / Mix | Growth FX Impact Growth of 10% i 17% (8%) o% Th 30% 36% - 36% 25% 1A | 24% (6%) 16% %% 15% 24% (5%) 18%
Slide 26: Quarter-over-Quarter Gross Margin Bridge
QUARTER-OVER-QUARTER 10 2023 GROSS MARGIN BRIDGE SEQUENTIAL IMPROVEMENT IN MARGINS DRIVEN BY INTRODUCTION OF EMEA PRICE INCREASES AND IMPROVING MIX EFFECT ACROSS REGIONS, OFFSET BY SLOWER RECOVERY IN CHINA POST COVID-19 RE-OPENING AND ONE-OFFS IN AMERICAS RELATED TO CO-PACKER CONSOLIDATION NET SALES
Slide 27: Adjusted EBITDA Margin
% Margin1 (45.2%) (31.0%) (25.5%)
Slide 28: Reiterating Outlook
REITERATING OUTLOOK™ 2023 REVENUE) 23%, - 28% YOY CONSTANT CURRENCY GROWTH SETS UP FY 2024 FOR GROSS MARGIN SEQUENTIAL 0/0 IMPROVEMENT, POSITIVE ADJ, EBITDA REACHING HIGH-2025 IN 40 ON A FULL-YEAR BASIS CAPEX $180 - $200 MILLION
Slide 29: Appendix
APPENDIX
Slide 30: Revenue Split by Channel and Region
~~ A REVENUE SPLIT BY CHANNEL - 10 2023 REVENUE SPLIT BY REGION) - 10 2023 4% 34% 63% Food retail Foodservice) Other?) {emea Americas | Asia 30
Slide 31: Revenue Split by Channel
zz REVENUE SPLIT BY CHANNEL- 10 2023 “K sg 1 17h i 18% 46% D- 65% 84% {Food retail Foodservice) | Other?) 31
Slide 32: Year-over-Year Gross Margin Bridge
YEAR-OVER-YEAR 10 2023 GROSS MARGIN BRIDGE 0.3%
Slide 33: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Non-IFRS Financial Measures — Reconciliation (Unaudited) Three months ended March 31, (in thousands of U.S. dollars) 2023 2022 Loss for the period attributable to shareholders of the parent (75.3577) (87.459) Income tax expense/(benefit) 2.012 (1,121) Fi
Slide 34: Revenue and Adjusted EBITDA by Segment
RECONCILIATION OF NON- FRS FINANCIAL MEASURES Revenue, Adjusted and EBITDA ‘Three months ended March 31, 2023 (in thousands of U.S. dollars) EMEA Americas Asia Corporate* Eliminations** Total Revenue Revenue from external customers 98.216 64.041 33,388 _ _ 195,645 Intersegment revenue 851 _ 1,440 _
Slide 35: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Tires months ended $ Change % Change 2023 2022 As change constant ant Vol currency exchan: constant lume currency meperted impact. currency POFtd currency price/mix EMEA 98,216 90,483 98,216 7,495 105,711 8.5% 16.8% 64% 10.4% Americas 64,041 47,017 64,04
Slide 36: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Three months ended December 31, (unaudited) 2022 (in thousands $) Loss for the period attributable to shareholders of the parent (125,169) Income tax (benefit)/expense 3,236 Finance (income) and expenses, net (3,098) Depreciation and amortization expense
Slide 37: Eliminations in 2022
## ELiminations in 2022 refer to intersegnent revenue for sales RECONCILIATION OF NON-IFRS FINANCIAL MEASURES Three Months Ended December 31, 2022 (in thousands of U.S. dollars) EMEA Americas Asia Corporate* Eliminations** Total Revenue Revenue from external customers 89,974 64,386 40,708 = = 195,06
Slide 38: Reconciliation of Non-IFRS Financial Measures
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES (in thousands of U.S. dollars) EMEA Americas Asia Total revenue Three Months Ended Decosber 31, $ Change % Change 202202 sontttad sschnge Jn constant ag reported TL EOREM —Vetune sinroney 89,974 88,881 89,974 12,615 102,589 1.2% 15.4% 11.5% 3.9% 64,386 5